EED recast: EU Council adopts general approach on EED

Today, the Council of the European Union adopted its general approach on the recast of the Energy Efficiency Directive (EED). This is a fundamental legislative step for the Union to reduce its greenhouse gas emissions by at least 55% by 2030 and phase out fossil fuel imports from Russia as soon as possible.

EU-ASE welcomes that for the first time, the Union is getting closer to finally have a binding target for energy efficiency, departing from the current Energy Efficiency Directive which only sets an indicative energy efficiency objective. Furthermore, although national contributions are not binding, the Council agreed on a governance of the Directive which would allow the Commission to activate a “gap-avoider” mechanism if the sum of contributions do not add up towards the EU target. It is an important step forward.

But the Council lost a major occasion to put Energy Efficiency first and act on high energy prices by creating the right regulatory conditions to reduce energy demand for families and business. Firstly, the Council did not take up the proposal of the Commission to increase the energy efficiency target of at least 13% as issued in the REPowerEU strategy.

This is hardly justifiable, knowing that a 9% target would still imply Member States importing 233 bcm of fossil gas annually from third countries, while a 19% target would reduce gas imports to 104 bcm per year i.e. achieving in full the goal to reduce to zero Europe’s dependence on Russian natural gas, as Russia accounts to 40% of all of the EU’s gas imports. Secondly, Ministers did not agree to make the target for primary energy consumption binding, thus undermining the potential for energy savings gained at system level.

Monica Frassoni, President of the Alliance, said: “The Council general approach is not the end of the story: the European Parliament’s rapporteur position aims to a much more ambitious 19% energy efficiency target by 2030, which reflects the potential for energy savings. We support wholeheartedly the effort of the rapporteur Niels Fuglsang and of the many stakeholders at EU and national level working to boost investments in energy efficiency. Energy Efficiency First will increase Europe’s resilience and is a formidable way to address the energy and climate crisis”.

You can find the full press release here 


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The European Alliance to Save Energy (EU-ASE) is a cross-sectoral, business-led organisation that ensures that the voice of energy efficiency is heard across Europe. EU-ASE members have operations across the 27 Member States of the EU, employ over 340.000 people in Europe and have an aggregated annual turnover of €115 billion.

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REPowerEU: EU-ASE welcomes increase of energy efficiency and renewables targets

Today, the European Commission presented its REPowerEU plan, containing measures promoting energy savings to help the EU phase out imported fossil fuels from Russia as soon as possible, as well as a proposals to further increase the headline targets of the Energy Efficiency Directive and the Renewable Energy Directive by 2030.

The European Alliance to Save Energy strongly believes that the EU’s response to break the dependency from foreign fossil fuels and to the climate crisis must translate into a much more ambitious “Fit For 55”  package, with a massive increase of our efforts to save energy and generate energy from renewable sources by the end of the decade. Energy efficiency and renewables are intertwined and are both critical to strengthen energy security while decarbonising the European economy in a socially just and affordable way.

We therefore welcome the Commission’s legal amendment to raise the EU’s 2030 targets for energy efficiency and renewable energy to 13% and 45% respectively.

The proposal to raise the target in the Energy Efficiency Directive from at least 9% to at least 13% is a step in the right direction – commented Monica Frassoni, President of the European Alliance to Save Energy – and we appreciate the Commission’s effort to adjust its own proposed target to reflect the new political and economic context and soaring energy prices since the proposal came out in July 2021.”

 The proposed legal amendment does not reflect the cost-effective potential of a 19% energy efficiency target, as proposed by the European Parliament rapporteur, MEP Niels Fuglsang. Implementing energy efficiency measures in all sectors is the first essential and rational action to foster the structural changes required to phase out fossil fuels and address both the energy and climate crisis.

 “We are aware of the existing reserves and resistance in several member States, but we are convinced that only a clear and binding legislative framework, adequate resources and assistance can convince them to support this. Energy efficiency is an essential element of our energy security and decarbonization strategy. Now it is time to deliver, and energy efficiency measures offer a broad range of economic, environmental and social benefits for citizens and businesses” concluded Monica Frassoni.

The European Alliance to Save Energy has recently developed an inspiring catalogue of energy efficiency measures, many of them readily available and made in Europe, and stand ready to support the Institutions to deploy such measures and reduce gas consumption in Europe.

Download the Pdf version 

Media contact:
Antoan Montignier
Policy and Advocacy Advisor
antoan.montignier@euase.eu
+32 499 84 97 28

 

About us

The European Alliance to Save Energy (EU-ASE) is a cross-sectoral, business-led organisation that ensures that the voice of energy efficiency is heard across Europe. EU-ASE members have operations across the 27 Member States of the EU, employ over 340.000 people in Europe and have an aggregated annual turnover of €115 billion.

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Making the Energy Efficiency Directive fit for 55%

Following the adoption of the Climate Law and in view of its higher climate ambition for 2030 and 2050, the European Commission proposed to revise the Energy Efficiency Directive. Energy efficiency must become the bedrock of a decarbonised energy system.

Amending the Energy Efficiency Directive (EED) is the starting point for the Union to deliver on the necessary reduction of energy demand, to define and operationalise the Energy Efficiency First principle and to set the right policy mechanisms that would address the overall efficiency of the energy supply chain. These are the necessary conditions to achieve a highly efficient and renewable-based energy system in view of the full decarbonisation of our economy.

This paper contains the recommendations of the European Alliance to Save Energy to help making the EED fit for 55% and set the longer track to achieving climate neutrality by 2050.

The recommendations touch upon:

  • Energy efficiency targets for increased ambition
  • Public sector leading by example
  • Expanding the scope to all public and private non-residential buildings
  • Public procurement
  • Align the Energy Savings Obligation with 2030 and 2050 ambition
  • Energy audits and management systems
  • Energy efficiency in Heating and Cooling
  • Demand response and efficiency in transformation and distribution networks
  • Availability of qualification, accreditation and certification schemes
  • Information and training
  • Energy services market
  • Energy efficiency national funds and other support mechanisms
  • Primary Energy Factor

Read the full paper

 

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Commission strengthens EU energy efficiency rules, lacks ambition on targets

The European Commission unveiled today its “Fit for 55” package to adapt the EU’s energy and climate legislation to the new goals of reducing emissions by at least 55% by 2030 and reach climate neutrality by 2050. The package includes the key proposal to revise the Energy Efficiency Directive (EED).

The EED proposal contains a number of positive elements. First of all, it enshrines the Energy Efficiency First principle (EE1st) in the Directive, introducing the much-needed obligation to apply the principle in the decision making of energy and non-energy sectors.

Other important elements are the extension of the public owned building renovation obligation to all public bodies, as well as the introduction of a new obligation to cut energy consumption of public bodies by at least 1.7% annually until 2030.

The revised Directive reinforces the annual energy savings obligations target after 2024 by 1.5%, almost doubling the current obligation. It also excludes the accountability of direct fossil fuel combustion technologies and clarifies that a reduction of the energy use through measures under the ETS cannot count towards the fulfilment of the energy savings obligation.

The European Alliance to Save Energy (EU-ASE) welcomes the Commission’s proposal to level up its ambition on the EU energy efficiency rules. By acknowledging the Energy Efficiency First principle, the Commission recognises its crucial role to drive a fast and fair transition in energy and non-energy sectors. However, we regret that the Commission chose not to propose binding national targets on energy efficiency; furthermore, we are critical of the Commission’s decision to propose an EU wide energy efficiency target that, even if mandatory, is not aligned with the EU decarbonisation pathway. The Commission introduces a 36% target for final energy consumption, which does not catch the cost-effective opportunities stemming of at least 40% energy efficiency target by 2030.

Monica Frassoni, President of the European Alliance to Save Energy said:
The latest extreme weather events around the world and the ongoing Covid-19 pandemic show that there is no time left for half measures on climate and on economic recovery. The EU Energy Efficiency Directive must be fit for Europe’s decarbonisation goals as well as foster economic activities aiming at increasing efficiency in buildings, industry, and transport. In this sense, we think that the proposed targets should have been more ambitious. We will be working over the next months to demonstrate to the co-legislators that delivering on ambitious energy efficiency targets and fully applying the Energy Efficiency First principle is essential if the EU wants to be credible about reaching climate neutrality in time and avoid the worst effects of climate change. We hope that the European Parliament and the Council will further improve the current proposal”.

Harry Verhaar, Chair of the board of the European Alliance to Save Energy and Head of Public and Government Affairs at Signify said:
“To be able to fully unlock the multiple benefits of energy efficiency across the continent we need an ambitious EU legal framework. We welcome the revision of the Energy Efficiency Directive, which comes at a timely moment for Europe’s green recovery and clean energy transition. In particular, we praise the Commission for strengthening the provisions on the Energy Efficiency First principle. The principle needs to guide policymakers and investors in all energy planning, policy, and investment decisions. Energy efficiency is a powerful driver of sustainable economic growth and it is key to speed up our journey to a decarbonised Europe”.

Bertrand Deprez, Vice-Chair of the board of the European Alliance to Save Energy and Vice-President EU government affairs at Schneider Electric said:
“Energy efficiency is the indisputable driver to reach at least a -55% GHG emissions cut in the next decade. The European Commission proposal goes in the right direction, with very promising measures to accelerate energy efficiency efforts at end-use level, including the extension of renovation obligations to all public buildings. Yet, achieving the EU ambition for 2030 without tackling the renovation of the entire existing stock is ‘Mission: Impossible’: we need to extend it to all non-residential buildings.”

Bonnie Brook, Vice-Chair of the board of the European Alliance to Save Energy and Senior Manager Industry Affairs Building Automation at Siemens said:
“Enhanced criteria for energy audits and energy management systems are very encouraging. They should leverage the opportunities brought by the current advanced level of digitalisation. Smart technologies should be widely deployed to enable monitoring, analysis and evaluation of the energy performance as well as the progress to the carbon-free future”.

Ahead of the publication of the proposal, the European Alliance to Save Energy provided to the European Commission its recommendations on how to make the EED “fit for 55%”. The Alliance looks forward to working together with the European Parliament and the Council during the co-legislation period to ensure that the Directive is ambitious and comprehensible.

According to the International Energy Agency’s Global Net Zero Roadmap for the Energy sector, the path to global net zero emissions implies a global push in energy efficiency gains resulting in the annual rate of energy intensity improvements averaging 4% to 2030 – about three times the average over the last two decades.

Download the Pdf version

Media contact:
Antoan Montignier
Policy and Advocacy Advisor
antoan.montignier@euase.eu
+32 499 84 97 28

About us
The European Alliance to Save Energy (EU-ASE) aims to advance the energy efficiency agenda in the European Union. The Alliance allows world’s leading multinational companies to join environmental campaigners and a cross-party group of Members of the European Parliament. EU-ASE business members have operations across the 27 Member States of the European Union, employ over 340.000 people in Europe and have an aggregated annual turnover of €115 billion.

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Carbon pricing is no silver bullet to decarbonise buildings across Europe

The introduction of a carbon price in the building sector will only encourage fuel switching and risks burdening those least able to pay with the cost of decarbonisation. If implemented, it should be complemented with legislation to boost energy efficiency.

by Monica Frassoni, President of the European Alliance to Save Energy (EU-ASE)

At the end of 2020 European Union leaders agreed to increase the bloc’s emission-reduction target to at least 55% by 2030, confirming the EU’s commitment to becoming the first climate-neutral continent by 2050. If the EU wants to achieve this ambitious goal, it needs to increase its action to decarbonise one of its most energy-intensive and polluting sectors: buildings.

As an example, the CO2 emissions from space and water heating in residential buildings represent 12% of the total EU emissions, as much as all cars in Europe combined. This is the case because more than 75% of the energy produced for heating homes currently comes from fossil fuels. Switching from fossil to low or zero-carbon fuels has an enormous potential in terms of CO2 savings—an estimated 291 tonnes of CO2 by 2050.

In this context, the European Union is discussing the opportunity to establish a carbon price in the building sector. However, that is far from being simple.

Before implementing carbon pricing, lawmakers must carefully assess its different modalities (from a tax to market-based instruments, such as an emissions trading system) and impact on the building sector, in light of its specificities. These include the low-price elasticity of energy demand, which shows that energy prices are inelastic in both the short and long term: energy consumption will fall by less than 1% in response to a 1% increase in energy prices. Such low elasticity could only be overcome with a significantly higher CO2 price.

Moreover, carbon pricing for buildings may be ineffective due to the peculiar management or ownership structure of the sector. This generates split incentives which tend to blur the responsibilities and the related costs for fuel switch. Even if a fuel switch is achieved, a carbon price alone is expected to have a limited impact in terms of buildings’ energy efficiency gains, which are crucial for achieving decarbonisation quicker and with fewer resources through renovations—especially deep ones—of the existing building stock.

 

Read the full article on FORESIGHT Climate & Energy

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